Aegon UK's distribution businesses Origen and Positive Solutions posted combined losses of £2m in the second quarter of 2010.
Year-to-date losses for the pair stand at £4m, up from a £5m deficit recorded in the same period last year.
Aegon says the losses were limited by improved business performance and market conditions, adding restructuring measures at Origen, which led to 72 job losses, also contributed.
In the final three months of 2009, the distribution businesses lost a combined £8m.
"Given the losses previously recorded, these results are being seen as significant progress," Aegon spokesperson Lesley McPherson says.
Elsewhere, Aegon saw a 29% rise in UK life sales during the second quarter of 2010, taking €308m in new business.
The group's results, published today, show the UK arm's new life sales between April and June this year were up 16% from €265m during the first quarter of 2010 - a rise of 29% from €239m for the same period last year.
The UK figures contributed over half of worldwide new life business, which totalled €590m for the quarter, up 10% from Q1.
The group's worldwide return for the quarter was €522m after tax, up 26% on the same period last year.
Despite the strength of the UK business, a restructure aiming to achieve cost reductions of 25% in UK life and pensions operations, was identified.
CEO Alex Wynaendts also pledged to "sharpen focus on core activities". Having already left the bulk annuities market, Aegon aims to "refocus resources on the at retirement and workplace savings markets".
Aegon used the results to restate its aim of achieving "a greater geographical balance by reallocating capital to the growth markets of Central & Eastern Europe, Asia and Latin America".
Joined as head of strategy, multi asset, in June
Group income protection
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body